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Council authorizes $42,079 irrigation rate study as city prepares for large capital needs
Summary
The council approved a supplemental agreement with FCS Group for an irrigation rate study (about $42,079) to analyze rates, capital needs and revenue requirements tied to recent and planned investments in the irrigation system.
The Yakima City Council approved a resolution authorizing supplemental agreement #2 with FCS Group to conduct an irrigation rate study, with the work priced at $42,079 and funds to be drawn from the irrigation operating (enterprise) fund. Staff said the study will evaluate the utility’s historical finances, capital needs and revenue requirements and will serve as the financial foundation for potential borrowing and long‑term rate decisions.
Why it matters: The city has made significant capital investments in recent years — including pipeline and diversion projects — and staff said an independent professional rate study is necessary to build credibility with bond markets and to produce an equitable, defensible rate structure. Council approved the supplemental agreement 6–1.
Staff presentation and questions
Public Works and utility staff explained the study’s scope: review of the customer base, operational forecasts, capital funding needs and a recommended rate schedule. City Finance and operations staff said the study firm FCS Group is commonly used for municipal utility rate work and that the report will be required to support any future borrowing or bond issuance for irrigation capital projects. Council asked about internal capacity to perform the work; staff said the city lacks in‑house expertise and that recruiting a staff position with equivalent qualifications would be more costly than the consultant engagement.
Council action
Deputy Mayor Brown moved and Councilmember DCO seconded the resolution to authorize the supplemental agreement; the roll call vote was 6–1 in favor. City staff noted the irrigation operating fund is an enterprise fund and that the spending does not affect the general fund.
Next steps
Staff will work with FCS Group to deliver a financial plan and recommended rate structure intended to guide capital-financing decisions and any future rate ordinances. The study’s results will be presented to council once complete and may form the basis for rate adjustments and potential bond financing.
